1 Hidden Catalyst That Could Ignite Dye & Durham Stock
1 Hidden Catalyst That Could Ignite Dye & Durham Stock
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Tech stocks, especially those which entered the TSX in the 2021 tech bubble, have been volatile. Legal practice management software provider Dye & Durham (TSX:DND) is among those. After surging almost 250% in the tech bubble, the stock has returned to its IPO price. DND stock is up for growth from this point forward as it puts behind the weak business environment and short-term headwinds and prepares for a recovery. The stock could surge triple digits if its hidden catalyst is ignited.
科技股,尤其是那些在2021年科技泡沫中进入多伦多证券交易所的科技股,一直波动不定。法律执业管理软件提供商戴伊和达勒姆(多伦多证券交易所股票代码:DND)就是其中之一。在科技泡沫中飙升了近250%之后,该股已恢复了首次公开募股价格。DND股票从现在开始有望增长,因为它为疲软的商业环境和短期不利因素提供了支持,为复苏做准备。如果其隐藏的催化剂被点燃,该股可能会飙升三位数。
A hidden catalyst that could drive up Dye & Durham stock
一种隐藏的催化剂,可能会推动戴伊和达勒姆股价上涨
This cloud-based software company caters to a niche market of legal professionals. Among legal professionals, almost 43% of its revenue comes from real estate transactions. The seasonal nature of the real estate market makes the second half of the year strong for Dye & Durham. The company took a hit in 2022 as rising interest rates slowed real estate transactions. While the buying activity has not yet recovered, a 25-basis point interest rate cut by the Bank of Canada has opened doors of recovery.
这家基于云的软件公司迎合了法律专业人士的利基市场。在法律专业人士中,其收入的近43%来自房地产交易。房地产市场的季节性质使Dye & Durham的下半年表现强劲。由于利率上升减缓了房地产交易,该公司在2022年受到打击。尽管购买活动尚未恢复,但加拿大银行下调25个基点的利率为复苏打开了大门。
An increase in property settlements could boost revenue for Dye & Durham in the coming months.
房地产和解的增加可能会在未来几个月内增加Dye & Durham的收入。
Other reasons to be bullish on Dye & Durham
看好 Dye & Durham 的其他理由
Dye & Durham had two failed acquisitions last year, which slowed its sales and income growth. In August 2023, DND divested its newly acquired TM Group, followed by the cancellation of the Link acquisition. While Link increased DNDâs financing cost, TM Group affected DND's balance sheet. DND completed the TM Group acquisition, which was later cancelled by a regulator. Hence, it was forced to divest TM Group. Its revenue before August 2023 includes revenue from TM Group.Â
Dye & Durham去年有两次收购失败,这减缓了其销售和收入的增长。2023年8月,DND剥离了其新收购的Tm集团,随后取消了对Link的收购。虽然Link增加了DNDA的融资成本,但Tm集团影响了DND的资产负债表。DND完成了对Tm集团的收购,该收购后来被监管机构取消。因此,它被迫剥离Tm集团。其在 2023 年 8 月之前的收入包括 Tm Group.A的收入
Including TM Groupâs acquisition impact, DNDâs revenue grew 3% in the third quarter of fiscal 2024. Excluding the TM Group acquisition, revenue grew 16% year-over-year. The worst is over for DND.
包括Tm Groupa的收购影响在内,DNDA的收入在2024财年第三季度增长了3%。不包括对Tm集团的收购,收入同比增长16%。对于 DND 来说,最糟糕的时刻已经过去。
Whatâs next is organic growth. The next six months are seasonally strong for DND. Its revenue growth could shoot up as the impact of TM Group fades. The stock has already surged 16% in the last two weeks.
接下来是有机增长。未来六个月DND的季节性表现强劲。随着Tm Group的影响力减弱,其收入增长可能会激增。该股在过去两周内已经飙升了16%。
If the company continues to pay down its debt and focus on organic growth, it could turn profitable. The legal software purveyor has demand for its products as it operates in a niche segment.
如果该公司继续偿还债务并专注于有机增长,它可能会实现盈利。这家合法软件供应商在利基细分市场开展业务时对其产品有需求。
DND has been growing its annual recurring revenue, which now contributes 30% of its total revenue. Around 53% of its revenue comes from contract revenue. Its focus in 2024 is to reduce debt and increase its free cash flow to more than $70 million. It plans to repay up to $185 million in debt now. This debt repayment and acquisition-related costs pushed the company into losses.
DND一直在增长其年度经常性收入,现在占其总收入的30%。其收入中约有53%来自合同收入。它在2024年的重点是减少债务并将其自由现金流增加到7000万美元以上。它现在计划偿还高达1.85亿澳元的债务。债务偿还和收购相关成本使公司陷入亏损。
Final thoughts
最后的想法
Dye & Durham is a stock to buy and hold for the long term. It could grow gradually and return to steady growth in the long term. However, it is a small-cap stock, which means high volatility and lower trading volumes increase the risk. Invest only the amount you are willing to lose or donât need urgently. Alongside DND, invest in resilient growth stocks like Constellation Software and Descartes Systems.
Dye & Durham是一只值得长期购买和持有的股票。它可能会逐步增长并长期恢复稳定增长。但是,它是一只小盘股,这意味着高波动性和较低的交易量会增加风险。只投资您愿意损失或不急需的金额。除DND外,还投资Constellation Software和笛卡尔系统等弹性成长型股票。
The post 1 Hidden Catalyst That Could Ignite Dye & Durham Stock appeared first on The Motley Fool Canada.
《可以点燃 Dye & Durham Stocka的隐藏催化剂》一文首次出现在 The Motley Fool Canada 上。